According to industry sources on the 5th, SK Hynix is \u200b\u200bin the final stages of negotiations with Microsoft for a long-term supply contract for DDR5. The contract is worth tens of trillions of won and will be in effect for three years starting this year.<\/p>\n
– Hankyung (Automated Translation)<\/p>\n
We have discussed the rise of long-term supply agreements in the memory industry before<\/a>, but it was assumed to be limited to Samsung. However, now that SK hynix is actually pursuing a similar opportunity, this indicates two key factors for the overall memory demand. The first is that, by essentially entering into three-year contracts, suppliers are seeking persistent demand over the upcoming quarters, which would allow them to navigate expansion plans and revenue. The second is that a three-year contract is an indirect indication that the memory cycle, which was estimated to end by 2028, could extend even further.<\/p>\n The report says that hyperscalers right now aren’t concerned about entering into memory agreements that might put them in trouble down the road; rather, their primary focus is securing sufficient DRAM to fuel the infrastructure buildout. In a recent report, we noted that memory costs alone account for more than 30% of total hyperscaler spend<\/a>, indicating that not only is DRAM an important commodity for these companies, but they are also willing to ‘risk it all’ for supply. Rather than a pricing war, memory markets are essentially a supply war, where the entities with DRAM supply will win.<\/p>\n These long-term contracts playing out aren’t good for the consumer PC industry at all, given that not only do they strip away access to future production additions, but they also prolong the demand cycle, which could indirectly signal that prices will stay high for several years. Judging by this factor alone, opportunities like the TurboQuant sellout<\/a> could be among the few that drove down DDR5 prices, but on the macro level, DRAM spot and contract prices will rise aggressively.<\/p>\n \t\t\t\t\t\t\t\t\t \n\t\t\t\t\tAbout the author<\/a>: Muhammad Zuhair is a hardware<\/a> and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel.
![\"\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/04\/SK-hynix-DDR5-Memory-DRAM-728x517.jpg\")
<\/a>Image Credits: SK hynix<\/p>\n
\n\t\t\t\t\t\t![\"Muhammad](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/04\/zuhair-haider.jpg\")
\n\t\t\t\t\t<\/a><\/p>\n
\n
\nZuhair’s expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.\t\t\t\t<\/p>\n